Opinions - Arizona 2020

Let's create climate for business

by Mary Peters - Jan. 29, 2010 09:54 AMThe Arizona Republic

When determining our future, it is important to base our policies on the key governing principles of less government, lower taxes, personal freedom and responsibility, robust free markets, minimal government regulation, and caring for the most vulnerable of our citizens.

I believe the federalism outlined in the U.S. Constitution was meant to empower states and give states the ability to pursue these goals. Adhering to these principles will encourage a diverse and growing economy - and prevent repeated boom-and-bust cycles.

The governor and Legislature need the freedom to create a business-friendly climate to attract and retain businesses that pay their employees well and allow our state to increase the per capita income of our citizens. Lowering corporate- and business-property taxes to bring them more in line with other states in this region would be a good start.

A business-friendly climate would attract the type of industries Arizona will need in 2020. It would lead to an expansion of our aerospace industries, the biosciences, medical research and innovation, high technology, and alternative- and renewable-energy production and transmission. These industries will provide good, high-paying jobs, higher per capita income and a higher standard of living for Arizonans.

Another key to attracting these industries is a well-educated, highly skilled workforce, requiring that our K-12 schools, colleges and universities prepare our citizens for those opportunities. School choice, measuring progress and rewarding teachers who excel are fundamental elements of a well-educated workforce. One needs to look no further than the BASIS Schools in Tucson and Scottsdale for examples of excellence.

Transportation infrastructure is yet one more area businesses should consider before deciding where to locate major operations. Although Arizona has fared better than some other states in this respect, we must do more.

There are better ways to attract the funding necessary to expand, operate and improve our highway and transit infrastructure than with traditional, outdated fuel taxes. Attracting private investment through public-private partnerships and using congestion pricing to keep traffic lanes free-flowing are excellent alternatives that don't require new taxes. Tying cost to the amount of traffic on express traffic lanes, for example, can improve traffic flow on those lanes by 40 percent and enable low-cost options such as special lanes reserved just for buses.

Perhaps the biggest threat to our success over the next decade comes from Washington, D.C., where the rising tide of unfunded mandates, federal infringement on states rights, and the potential of being forced to pay for federal responsibilities could undo any chance we have of jump-starting our sluggish economy.

Mary Peters, a Peoria infrastructure consultant, served as U.S. secretary of Transportation from 2006 to 2009.